The Diary Of A CEO with Steven Bartlett

Podbit · The Diary Of A CEO with Steven Bartlett

Ray Dalio: I Predicted The 2008 Crash, I Know What Comes Next

Explore episode Jul 30, 2026

Where this was said

Why Economic Bubbles Burst—and How to Prepare Before They Do

At 13:13 · chapter starts 12:17

Bartlett pushes on the mechanics: if we're in a bubble, what actually pops it? Dalio identifies two main pricking mechanisms. First, rising interest rates push debt returns above equity returns, forcing leveraged holders to sell. Second, the supply side floods the market — companies find it almost frictionlessly easy to issue new stock in a bull market, and the surge in supply tips the balance. He also introduces the concept of 'weak hands' versus 'strong hands': a bubble at risk is one where non-sophisticated, leveraged retail investors have piled in through products like leveraged ETFs. He confirms all these signs are currently visible in the AI sector — the bubble is not hypothetical, it is underway, and the only uncertainty is timing.

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